MoraBanc achieves a profit of 34.5 million euros in 2021, a 15% increase.

MoraBanc has closed the 2021 financial year with a profit of 34.5 million euros, 15% more than in 2020. In the 2021 accounts, BSABanc’s contribution to MoraBanc’s profit amounted to one million euros. The 2021 financial year coincides with the completion of the 2019-2021 strategic plan, with the targets exceeded. The balance sheet for the 2021 financial year is very positive, as has been the implementation of the 2019-2021 plan.

MoraBanc’s profit has increased from 24 million euros when the plan was launched in January 2019 to 34.5 million euros at the end of 2021. This result was higher than expected and MoraBanc is now the leading Andorran bank in terms of profits. Thanks to a consolidated and sustainable business model, MoraBanc now has 5 consecutive years of growing results.

MoraBanc’s assets under management (AuM) also follow an upward trend, closing 2021 with 9,296.7 million, 17% more than in 2020, with an increase generated by MoraBanc in Andorra of 698 million euros. In the last 3 years that the plan has been in place, MoraBanc has increased AuM by 42%. MoraBanc’s market share in Andorra grew from 22.4% to 27.4% between January 2019 and December 2021, thanks to a way of banking adapted to the needs of clients.

MoraBanc’s loan book, focused on granting loans and credits to companies and families, has grown by 5% compared to 2020, reaching a total volume of 1,232 million euros. This growth has gone along with an improvement in credit quality, as the non-performing loan ratio is 2.9% and the loan-to-deposit ratio is 91.50%. While the strategic plan has been in place, the portfolio has grown by 16%.

In the past 3 years, MoraBanc has been able to improve the recurrence of income and control expenses in order to achieve a cost-to-income ratio of 57.1% at the end of 2021, better than European banks as a whole, which are at 64.29% at the end of 2021. The evolution of efficiency over the past 3 years has been very positive in terms of preparing the institution for growth and providing a more resilient structure capable of facing new challenges.

Key figures of the balance sheet evidence MoraBanc’s strength. Its capital ratio at the end of 2021 was 18.4% (CET1 fully-loaded); the average LCR liquidity value closed at a ratio of 307.20%, well above the 100% minimum requirement; the financial profitability measured by ROE also increased to 10.09%. MoraBanc’s ratios are above the average of Andorran and European banks.

Finally, the international subsidiaries, Boreal Capital Management in Zurich and Miami, and MoraWealth in Barcelona, fully contributed to the achievement of the strategic plan. Boreal added 1.5 million euros to the profit and 629 million euros to the total AuMs in 2021. In the last 3 years, Boreal’s AuMs have grown by 69% and represent 35% of MoraBanc’s total.

Joan Maria Nin, Chairman of MoraBanc

“MoraBanc is proving itself to be a reliable, growing bank with a solid business model. Beyond profit alone, the other indicators also show that, thanks to the strength of the balance sheet, we are clearly the leading bank in Andorra.”

Lluís Alsina, Chief Executive Officer of MoraBanc

“We are closing out 2021 having achieved and exceeded all the goals in the strategic plan and this gives us confidence to face the future, with the increasingly rigorous challenges we will have, such as digitalisation, a more competitive market and being an attractive, agile and client-focused institution.”

BSABanc holding in MoraBanc results

In these three years, all the objectives set out in the strategic plan have been achieved, as well as the acquisition of Banco Sabadell’s 50.97% holding in BancSabadell d’Andorra (now BSABanc) at the end of 2021. The consolidation of BSABanc into the MoraBanc group for the 2021 financial year led to the following overall results:

• Profit: BSABanc contributed 1,016,700 euros to the MoraBanc group, that is, 3% of the total profit.
• Assets under management: 1,960.7 million euros of assets under management from BSABanc were consolidated in MoraBanc’s balance sheet, for a total volume of 11,257.4 million.
• Loan book: BSABanc’s contribution of 418 million euros in credits and loans to clients consolidated the MoraBanc group’s total figure at 1,650 million euros.

During 2022, the integration of BSABanc into the MoraBanc group will continue. This will enable it to further strengthen the group’s position in Andorra and build on these good foundations to grow in the coming years. The new strategic plan, launched in 2022 will end in 2024, and has more ambitious and exciting goals, such as the constant improvement of client service, a strong investment in digitalisation and the consolidation of international markets.